MILPITAS, Calif. (AFX) - Linear Technology Corp., a supplier of analog integrated circuits, said Thursday it received a notice from the Securities and Exchange Commission requesting documents related to its past stock option grant practices.
The company said it will comply with the SEC's request.
On May 24, Linear Technology said it was named in two stockholder derivative lawsuits that alleged the company illegally backdated stock option grants to executive officers between 1995 and 2002. The company said it intends to defend the lawsuits vigorously, and it does not anticipate the resolution of the lawsuits will have a material impact on results.
Linear is one of at least 42 companies that are under investigation by the Securities and Exchange Commission or federal prosecutors for questionable stock option granting practices. It is alleged that many of these companies backdated stock option grants to coincide with share price lows to increase gains when the stock is sold.
Shares of Linear Technology were trading at $34.40, down 38 cents from Thursday's closing price of $34.78 on the Nasdaq.
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